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Where Taxpayers and Advisers Meet

Tax questions on sale of property

alexmana
Posts:1
Joined:Tue May 23, 2017 7:15 am
Tax questions on sale of property

Postby alexmana » Tue May 23, 2017 7:36 am

Trying to understand tax issues on following scenario. Any answers/advice appreciated.

House belongs to AA, resident of UK, British passport holder. AA sells house, which is AA's primary residence, and money from sale split between AA and BB. BB is sibling of AA, is also a British passport holder but has lived overseas for a decade, so considered non-domicile. BB also has a passport from another country.

Questions:

1. Will BB be liable for any tax in the UK from money received from the sale, since BB is non-domicile (country where BB has other passport will not tax BB for income received)?

2. If BB moves back to UK six months after receiving money from sale, will BB be liable for any tax from UK authorities?

3. If the answer to question 2 is yes, is there a time limit after receipt of funds from sale that BB needs to remain non-domicile for BB to free of any liability of tax to UK authorities?

Many thanks.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax questions on sale of property

Postby pawncob » Tue May 23, 2017 12:20 pm

It's a gift from one sibling to another. No tax liability arises.
With a pinch of salt take what I say, but don't exceed your RDA


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